Yes, a company can offer a 401k plan with both halal and non-halal investment options to accommodate both Muslim and non-Muslim employees. Here are a few ways this can be achieved:
Self-Directed Brokerage Account: As part of the 401k plan, employees can be given the option to open a self-directed brokerage account. This allows them to invest their 401k contributions into investments of their choice, including halal options like sharia-compliant mutual funds and ETFs.
Designated Halal Fund Option: The company's 401k investment menu can include designated halal mutual funds or ETFs focused on sharia-compliant stocks as one of the options. This caters specifically to Muslim employees' needs within the overall plan.
Socially Responsible Investing Funds: Many socially responsible or ethical funds avoid industries and stocks incompatible with Islamic values like gambling, alcohol, etc. These could also appeal to Muslim employees, even if they are not strictly labeled as "halal.".
Answered a month ago